Headlines
Power and gas contracts saw mixed movements this week, with most near-term contracts rising and some seasonal contracts reducing. Day-ahead gas rose 12.5% to 29.80p/th, an eight-month high, continuing to find support from increased gas-for-power demand and ongoing maintenance on the Forties pipeline system. Day-ahead power fell 9.0% to £43.00/MWh, due to rising levels of wind output at the end of the week, but despite a fall in its gas counterpart. October 20 gas saw a large rise amid tightening LNG supplies for this coming Autumn, up 6.5% to 31.04p/th. Most seasonal gas contracts declined this week, down by 1.1% on average. An exception was winter 20 gas which increased 1.0% to 39.05p/th, but summer 21 gas slid 1.5% to 33.68p/th. Most seasonal power contracts followed their gas counterparts, with contracts falling on average by 1.1%. Winter 20 power expanded 0.2% to £51.09/MWh, while summer 21 fell 0.9% to £44.15/MWh. International commodities saw mixed, mostly relatively small, movements. Brent crude oil declined marginally while EU ETS carbon prices extended the previous weeks gains and at times went above €29/t.
Baseload electricity | | |
- Day-ahead power fell 9.0% to £43.00/MWh, as wind output picked up towards the end of the week.
- October 20 power climbed 1.8% to £44.28/MWh and November 20 power increased 6.3% to £54.91/MWh.
| | - Q420 power moved 2.0% higher to £50.00/MWh.
- The annual October 20 contract lost 0.3% to £47.62/MWh, which was just 4.0% lower than the same time last year (£49.6/MWh) following several months of resurging prices.
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Forward curve comparison | | Annual October Contract |
Peak electricity | | |
- Day-ahead peak power was up 2.1% to £48.00/MWh, despite a fall in its baseload counterpart amid colder weather and tighter forecast supply margins over peak periods.
- October 20 peak power gained 3.4% at £50.32/MWh, but November 20 peak power decreased 1.0% to £62.06/MWh.
| | - The annual October 20 peak power contract lost 1.7% to £53.8/MWh.
- This is just 4.3% lower than the same time last year (56.22/MWh).
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Forward curve comparison
| | Annual October contract
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Seasonal power prices | | |
Seasonal baseload power contracts | | Seasonal baseload power curve |
- Most seasonal power contracts declined this week, down on average by 1.1%.
- Winter 20 power expanded 0.2% to £51.09/MWh, while summer 21 fell 0.9% to £44.15/MWh.
| | - Most seasonal peak power contracts boosted this week, up 1.6% on average.
- Winter 20 and summer 21 peak power increased 2.1% and 1.3% respectively, falling to £59.23/MWh and £48.37/MWh.
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Commodity price movements | | |
Oil and Coal | | Carbon
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- Brent crude oil prices remained relatively unchanged this week, falling slightly to average $44.97/bl.
- Prices have now stabilised following recent spikes at a near five-month high.
- The news this week concerning Hurricane Laura weighed on prices amid fears of production disruption.
- Early reports indicate that the threat of extensive damage from Hurricane Laura was avoided as the hurricane was downgraded from a Category 4 to a tropical storm.
| | - API 2 coal prices rose 4.6% this week to average $57.06/t.
- Following recent gains, EU ETS prices rose a further 1.6% to average €28.56/t this week.
- The market experienced mixed movements and volatility this week, with EUA’s briefly lifting above €29/t on 3 September.
- The carbon price held onto these gains for the remainder of the week supported further by prices lifting comfortably over €28/t following the biggest auction in a five week period.
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Wholesale price snapshot |